SB 765 — Teachers: retired teachers: compensation limitation.

Summary

(1) Existing law, the Teachers' Retirement Law, establishes the State Teachers' Retirement System (STRS) and creates the Defined Benefit Program of the State Teachers' Retirement Plan, which provides a defined benefit to members of the program, based on final compensation, credited service, and age at retirement, subject to certain variations. Under existing law, STRS is governed by the Teachers' Retirement Board (board) . Existing law permits members retired for service from STRS to perform retired member activities without reinstatement into the system if certain conditions are met. Existing law limits the postretirement compensation of a retired member of the program, in any school year, to an amount calculated by STRS each July 1 equal to 12 of the median final compensation of all members who retired for service during the fiscal year ending in the previous calendar year. This bill would modify that calculation so the limitation of postretirement compensation, in any school year, is instead an amount calculated by STRS each July 1 equal to 70% of the median final compensation of all members who retired for service during the fiscal year ending in the previous calendar year. Existing law establishes an additional postretirement compensation limit of $0 during the first 180 calendar days after the most recent retirement of a retired member for the performance of retired member activities. Under existing law, if a retired member has attained normal retirement age at the time compensation is earned, this postretirement compensation limit does not apply if the appointment has been approved by the employer in a public meeting and a resolution containing certain information has been adopted by the governing body of the employer, as specified. This bill would instead authorize a member retired from service to perform retired member activities, notwithstanding the above-mentioned 180 calendar days compensation limitation, if a request for exemption containing specified information is submitted by the Superintendent, the county superintendent of schools, or the chief executive officer of a community college to STRS, under penalty of perjury, as prescribed. By expanding the crime of perjury, the bill would impose a state-mandated local program. This bill would require a written copy or copies of the completed documentation that substantiates the need for the request for exemption to be submitted to the exclusive representative of employees prior to the retired member's performance of retired member activities. The bill, among other changes, would also require the board to submit, on or before February 1, 2027, to specified committees of the Legislature a report that includes, among other things, the total number of exemption requests received by STRS from July 1, 2024, to June 30, 2026, inclusive. (2) Existing law establishes the Cash Balance Benefit Program, administered by the board, as a separate benefit program within the State Teachers' Retirement Plan for purposes of providing a retirement plan for persons employed to perform creditable service for less than 50% of full-time equivalent service. Existing law provides that the normal retirement age for the program is 60 or 62 years of age, as applicable. Under the program, a participant retired for service may perform retired participant activities, but prohibits the participant from making contributions to the plan or accruing service credit under the Defined Benefit Program based on compensation earned from that service. Under the program, if the retired participant performs retired participant activities, receives compensation paid in cash for those activities, and meets other specified conditions, the annuity paid to the retired participant is reduced by the amount of compensation. Existing law, however, does not require reduction of the participant's annuity if the governing body of the employer, among other things, approves the appointment of the retired participant by resolution. This bill would instead exempt a retired participant from the annuity reduction requirement if the Superintendent, the county superintendent of schools, or the chief executive officer of a community college submits a request for exemption to STRS with certification, under penalty of perjury, of specified information. By expanding the crime of perjury, the bill would impose a state-mandated local program. This bill would require a written copy or copies of the completed documentation that substantiates the need for the request for exemption to be submitted to the exclusive representative of employees prior to the retired participant's performance of retired participant activities. (3) This bill would make all of the above-described changes effective from only July 1, 2024, to June 30, 2026, inclusive, before reverting to existing law. The bill would also make legislative findings and declarations in support of its provisions. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

• Chaptered 10/13/23 - Chaptered Current pdf October 13, 2023
• Enrolled 09/11/23 - Enrolled pdf September 11, 2023
• Amended 08/17/23 - Amended Assembly pdf August 17, 2023
• Amended 06/30/23 - Amended Assembly pdf June 30, 2023
• Amended 06/19/23 - Amended Assembly pdf June 19, 2023
• Amended 05/03/23 - Amended Senate pdf May 03, 2023
• Amended 04/11/23 - Amended Senate pdf April 11, 2023
• Amended 03/20/23 - Amended Senate pdf March 20, 2023
• Introduced 02/17/23 - Introduced pdf February 17, 2023
• SB765 View text html

Action History

1. October 13, 2023

   Chaptered by Secretary of State. Chapter 885, Statutes of 2023.

2. October 13, 2023

   Approved by the Governor.

3. September 13, 2023

   Enrolled and presented to the Governor at 4 p.m.

4. September 07, 2023

   Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2471.) Ordered to engrossing and enrolling.

5. September 06, 2023

   In Senate. Concurrence in Assembly amendments pending.

6. September 06, 2023

   Read third time. Passed. (Ayes 79. Noes 0. Page 2967.) Ordered to the Senate.

7. September 05, 2023

   Read second time. Ordered to third reading.

8. September 01, 2023

   From committee: Do pass. (Ayes 16. Noes 0.) (September 1).

9. September 01, 2023

   September 1 set for first hearing. Placed on APPR. suspense file.

10. August 23, 2023

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (August 23). Re-referred to Com. on APPR.

11. August 17, 2023

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on P.E. & R.

12. August 17, 2023

    Joint Rule 61(a)(10) suspended. (Ayes 72. Noes 0. Page 2729.)

13. July 11, 2023

    July 12 hearing postponed by committee.

14. June 30, 2023

    Read second time and amended. Re-referred to Com. on P.E. & R.

15. June 29, 2023

    From committee: Do pass as amended and re-refer to Com. on P.E. & R. (Ayes 6. Noes 0.) (June 28).

16. June 19, 2023

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on ED.

17. June 01, 2023

    Referred to Coms. on ED. and P.E. & R.

18. May 25, 2023

    In Assembly. Read first time. Held at Desk.

19. May 24, 2023

    Read third time. Passed. (Ayes 39. Noes 0. Page 1262.) Ordered to the Assembly.

20. May 18, 2023

    Read second time. Ordered to third reading.

21. May 18, 2023

    From committee: Do pass. (Ayes 7. Noes 0. Page 1183.) (May 18).

22. May 16, 2023

    Set for hearing May 18.

23. May 15, 2023

    May 15 hearing: Placed on APPR suspense file.

24. May 05, 2023

    Set for hearing May 15.

25. May 03, 2023

    Read second time and amended. Re-referred to Com. on APPR.

26. May 02, 2023

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 898.) (April 26).

27. April 21, 2023

    Set for hearing April 26.

28. April 19, 2023

    From committee: Do pass and re-refer to Com. on L., P.E. & R. (Ayes 7. Noes 0. Page 790.) (April 19). Re-referred to Com. on L., P.E. & R.

29. April 11, 2023

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on ED.

30. April 03, 2023

    Set for hearing April 19.

31. March 29, 2023

    Re-referred to Coms. on ED. and L., P.E. & R.

32. March 20, 2023

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

33. March 01, 2023

    Referred to Com. on RLS.

34. February 21, 2023

    From printer. May be acted upon on or after March 20.

35. February 17, 2023

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

• Portantino · Primary
• Brian W. Jones · Cosponsor

Votes

Subjects